Crypto investment products have finally recorded a week of outflows after seven weeks of consecutive strong inflows breaking records for two weeks after registrations. In fact, data has shown that these investment products have now set a new record for the most outflows in a week, extending the record streak.
According to data from CoinSharesInvestors pulled $942 million from crypto investment products last week to wipe out $10 billion in total assets under management (AuM). Interestingly, a larger portion of these outflows came from Bitcoin, such as Spot Bitcoin ETFs in the US registered outflow per day.
Crypto outflows hit new record
CoinShares’ weekly report on digital investment funds has revealed that crypto investment products have witnessed an influx of money for the last two months. Consequently, these products recorded seven-week inflows totaling $12.3 billion. Bitcoin, the largest cryptocurrency, received most of this inflow, pushing its price to a level of $1.2 million new all-time record.
However, last week told a different story for Bitcoin investment products, as Spot Bitcoin ETFs in the US recorded weak inflows of $1.1 billion, failing to offset Grayscale’s significant $2 billion outflows. As a result, Bitcoin investment products witnessed an outflow of $904 million in the past week. Short Bitcoin products also witnessed a small outflow of $3.7 million.
The negative sentiment flowed to other investments products such as EthereumSolana, Cardano and multi-asset products witnessed outflows of $34.2 million, $5.6 million, $3.7 million and $7.3 million respectively. On the other hand, Litecoin, XRP and Polkadot saw an increase in their respective inflows of $2 million, $1.2 million and $5 million. Finally, total trading volume fell to $28 billion, two-thirds of the previous week.
In terms of region, the US had the most outflows at $860 million. Sweden and Switzerland followed with $36.9 million and $25.2 million respectively. According to CoinShares, the turn to bad sentiment was largely due to investor hesitation.
What’s next for Bitcoin?
Interestingly, the outflow from Spot Bitcoin ETFs last week coincided with a drastic drop in the price of Bitcoin with the cryptocurrency decreasing to as low as $61,370. This shows how much influence these funds now have on the price of Bitcoin. Based on last week’s actions, investors appear to be pausing their enthusiasm for spot bitcoin ETFs. Whether that pause lasts weeks or longer remains to be seen.
However sentiment can switch quickly in the cryptocurrency market and recent price action shows that the sector could be return to bullish mode. According to data from BitMEX ResearchSpot Bitcoin ETFs recorded a day of net inflows yesterday. The recorded net inflow was $15.7 million, the lowest inflow day since January 26.
Bulls have taken over now pressure on the price of Bitcoin by 5.38% in the last 24 hours. At the time of writing, Bitcoin is trading at $70,676 could reach $73,000 again Very fast.
BTC price drops from $71,000 | Source: BTCUSD on Tradingview.com
Featured image from Atlantic Council, chart from Tradingview.com
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